More SUVs, fewer cars in Ford’s future lineup
The Detroit News | Ian Thibodeau | Jan. 16, 2018 | Updated Jan. 17, 2018
Ford Motor Co. will cut its car lineup in favor of SUVs to drive profits.
The automaker outlined the plans during the Deutsche Bank Global Auto Industry Conference here Tuesday. Ford plans to grow its SUV lineup by 10 percentage points, and shrink the car lineup accordingly “over the next couple of years” in North America.
The company also plans to launch seven new battery-electric vehicles in North America by 2022.
“We have a rock-solid foundation and we have seen growth in key areas, but we know we must evolve to be even more competitive, and narrow our full line of nameplates in all markets, to a more focused lineup that delivers stronger, more profitable growth, with better returns,” Jim Farley, Ford president of global markets, said in a statement.
Farley joined Ford Chief Financial Officer Bob Shanks at the presentation. The officials provided financial guidance for the next year, as well as preliminary 2017 results.
( iirc, this is that annual meeting that involves a detailed .Pdf of plans that we rarely get to see )
Shanks expects Ford will post a $7.8 billion profit for 2017. It expects to report $1.78 earnings per share for the year.
The company will also change how it reports its financial results to break out what it made or lost on the mobility segments. Ford expects to have lost $300 million on self-driving vehicle ventures last year.
Ford expects to post lower earnings per share in 2018 than it did in 2017 due to factors outside of the company. Ford expects to post an adjusted earnings per share of $1.45-$1.70 per share, the company reported Tuesday.
Shanks said he’s not satisfied with the company’s financial performance yet, but he’s much more confident in the company’s leadership changes and position in the market since a year ago.
Farley, meanwhile, outlined some of the business moves planned for the next few years.
Ford will “play to our strengths,” he said. Cars will give way to more crossovers and SUVs.
The company is planning to develop “authentic off-roaders and high-performance city crossovers.”
Farley also touched on news made earlier in the week at the Detroit auto show, where Ford announced plans to roll out 40 new electrified models by 2022, spending $11 billion to do so.
That presentation preceded a 45-minute fireside chat at the Automotive News World Congress where CEO Jim Hackett doubled down on his commitment to drive change at Ford.
He talked about positioning the company ahead of the curve in the future.
The company “is going to be so different than what you’re seeing at the show today,” Hackett said. “Ford is gonna aim ahead of where it has to be, because it has to be ahead in order for people to believe our strategy isn’t about catching up to somebody else’s old view.”
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Ford will launch 3 EVs in Europe, 'scale back' on passenger cars
AutomotiveNews-Europe - Michael Martinez - January 17, 2018
DETROIT -- Ford will scale back its car offerings in Europe and launch three electric cars in the region, the automaker said on Tuesday in a breakout of its investments in the future.
Ford said by 2022 it will launch 16 battery-electric vehicles and 24 hybrids or plug-in hybrids globally. North America will get 7 of the 16 battery-electrics. Europe will get three, and Asia Pacific will get 13. Some EVs will launch in more than one region.
Ford will increase its planned investments in electrified vehicles to $11 billion by 2022, a figure much higher than a previously announced target of $4.5 billion by 2020. The investment includes the costs of developing dedicated electric vehicle architectures.
Including gasoline-powered vehicles, Ford said it will have 25 product launches in North America by 2019, with a 35 percent of its lineup getting updated. Europe will have 27 launches by 2019, while Asia Pacific will have 24.
Ford will scale back on car offerings in North America and Europe, said Jim Farley, president of global markets. “We’ve made a lot of progress under One Ford, but it isn’t enough,” he said. “We’re pivoting away from a full line, all-market approach."
Said Farley: "We know we must evolve to be even more competitive and narrow our full line of nameplates in all markets, to a more focused lineup that delivers stronger, more profitable growth, with better returns."
Farley said that means focusing on performance SUVs and "authentic off-roaders" where the automaker can get higher profits even in a crowded utility field.
Ford expects its utility-vehicle mix will increase 10 percentage points over the next couple of years, while its car portfolio will shrink about 10 percentage points.
Ford is shifting $7 billion in product-development funding from cars to more profitable light trucks, CEO Jim Hackett said in October.
2017 earnings hit
Ford expects its investments in mobility and autonomous vehicles to reduce its 2017 earnings by $300 million. Next year, the automaker expects that figure will worsen, although the automaker is confident that decisions it is making now will bear fruit in 2019 and beyond.
Ford on Tuesday reported 2017 preliminary net income of $7.8 billion, up 70 percent due in large part to a much lower effective tax rate. The automaker said it expects its pretax profit will be $8.4 billion, down 19 percent, or $1.9 billion, from 2016. Ford will report full results on Jan. 24.
Ford released the product investment information and earnings figures as part of a presentation at the Deutsche Bank Global Auto Industry Conference in Detroit.